Hospital operator Burjeel Holdings announced a 25 percent decline in net profits for the first six months of 2024, falling to AED169 million ($46 million), despite a 9 percent rise in annual revenue to AED2.4 billion. Patient footfall saw an increase, with three million patients visiting in the first half, marking an 11 percent rise in the second quarter. However, the company did not disclose the growth figure for the first quarter.
The hospitals segment remained the main revenue driver, contributing 88 percent of total group revenue in the first half of 2024. Bed occupancy increased to 64 percent, suggesting potential for further utilization of existing infrastructure.
The medical centres segment showed strong revenue growth of 13 percent in the first six months of 2024, propelled by specialty care departments such as obstetrics, gynecology, pediatrics, orthopedics, and cardiology.
Burjeel plans to clear debts maturing in 2024 and 2025, which will lead to reduced financing costs. Additionally, the company’s strong balance sheet will provide financial flexibility for pursuing growth opportunities.
Despite the profit decline, Burjeel maintains a positive outlook for mid- and long-term growth, driven by successes in the UAE and Saudi Arabia. The outlook is further supported by strong mid-term GDP expansion, rapid population growth, and increasing demand for additional healthcare capacity.
Burjeel expects the second half of 2024 to be driven by the rapid ramp-up of high-growth assets and an increase in both international and domestic patient footfall, according to CEO John Sunil.
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